US Jobs Report Beats Expectations, Treasury Yields Soar

The US jobs report exceeded expectations, showing a gain of 162,000 nonfarm payrolls in August after an upward revision of 21,000 in July. Economists polled by Reuters had forecasted a rise of 56,000 jobs. The unemployment rate remained steady at the previous month's level.

Treasury yields rose sharply, with two-year yields increasing by 4 basis points to 4.37%. This marked the highest level since January 2025. Ten-year Treasury notes also saw a rise of nearly 2 basis points to around 4.78%.

Bret Kenwell, US investment analyst at eToro in New York, said 'In the Fed's eyes, the labor market is holding up, which means inflation remains the bigger problem.' He noted that investors will closely watch next week's consumer prices report before the Fed's mid-September decision.